Although formed quite early, today, many businesses still do not know what BPO service is ? And how does this activity work for businesses? In essence, BPO stands for ” Business Process Outsourcing “. This is a common form of business in which a company hires another company or a group of independent employees to perform some business process. Common outsourced activities are financial management, asset management, employee record management, customer support, or supply chain management.
In BPO services, the hiring company may require the BPO supplier to comply with its own standards and procedures or certified international standards and procedures. By using BPO services, companies can focus on their core operations, increase productivity and reduce costs. To better understand the concept of BPO, what is BPO ? As well as the benefits that this activity brings, let’s follow in the following article.
Business Process Outsourcing – What is BPO?
BPO is the abbreviation of the phrase Business Process Outsourcing, which is an activity that businesses outsource to a third party to support management and customer care. From there, these companies have enough time to focus on their areas of expertise and develop core strengths.
So what is the form of BPO? It can be briefly understood that this is the work that the business side entrusts another unit to perform business support activities. The industries listed in the BPO list often require a large number of personnel but the qualifications are not high. These industries can be mentioned as customer care, data entry, telesales….
What does bpo stand for?
The BPO outsourcing model thrives in densely populated countries, typically Southeast Asia. In particular, the Philippines is the country with a brilliantly developed BPO activity because of its large population and highly specialized human resources.
>> See more: What is Outsourcing?
What is BPO doing?
BPO companies in Vietnam will participate in 2 main areas of the company’s activities. These two functional areas are front-office and back-office. Detail:
- Front office functionality: includes business processes and activities that serve or are related to customers. Activities that can be mentioned are: customer relationship services, marketing, sales…
- Back-office function : Also known as working inside the business. The jobs that BPO form can support are: Human resource management, accounting and auditing, IT services, payment processing, product quality assurance.
In the market, there are a number of outsourcing companies that will specialize in a specific function, for example: specializing in human resource management, specializing in cash flow management or specializing in sales consulting support…
Specifically, the jobs that Business Process Outsourcing will support customers are:
- Financial and accounting management : BPOs can help companies handle tasks like account management, billing, accounting, financial reporting, and taxes.
- Asset management: Assist in the management of physical and intellectual assets of companies.
- Employee Records Management: Helps companies manage employee records, including registration, payroll management, ID management, and other related tasks.
- Customer Support: Helping businesses support customers through communication channels such as email, phone, or live chat.
- Supply Chain Management: BPO employees can help companies manage their supply chains, including ordering, production scheduling, inventory management, and deliveries.
In addition, a BPO company can also provide other services such as data management, computer programming and software development, customer relationship management (CRM) and online marketing.
History of birth and development of BPO?
To better understand what BPO is, let’s learn about the history of this type in the world and in Vietnam!
In the world
BOP first hit the market in 1980 in the United States, when companies began to use external suppliers to reduce costs and focus on their core activities. Then, the industry This has grown rapidly and spread globally. Populous countries such as India, the Philippines, China and Vietnam have become the world’s largest BPO hubs.
History of birth and development of BPO?
In Southeast Asia, the Philippines is known as the “dragon” of the outsourcing industry with more than 1 million people working in this field. China and Vietnam are emerging BPO hubs, with many companies opening BPO centers in cities such as Shanghai, Beijing and Hanoi. These countries are taking advantage of labor cost advantages and technological innovation to attract Business Process Outsourcing companies.
Going forward, it is forecasted that the BPO industry will continue to grow at a rapid rate and there will be changes in technology and trends.
In Viet Nam
In 1998 FPT Software Joint Stock Company first brought BPO service to Vietnam and became a pioneer in this field. After that, other big BPO companies such as IBM, HP, Unilever, Capgemini, Accenture… also gradually expanded the market in Vietnam.
During the 2000s, BPO in Vietnam focused mainly on IT and customer service. However, with the development of Vietnam’s economy, other BPO fields such as finance, accounting, insurance, health care, education, etc. have also been strongly developed.
According to a report by the General Statistics Office of Vietnam, in 2020, the BPO field in Vietnam will reach 3.2 billion USD in revenue, an increase of 5% compared to 2019. Vietnam is currently one of the potential BPO partners. of developed countries such as the US, Japan, Europe, etc.
3 popular forms of BPO today
BPO is divided into 3 popular forms based on service providers. These 3 forms are:
- Offshore outsourcing: is a form of enterprises signing outsourcing contracts with foreign companies.
- Onshore outsourcing : is the form of outsourcing services of a company in the same country or geographical area. It is used when companies want to take advantage of the benefits of outsourcing, but still want to retain more control and supervision than outsourcing in other countries.
- Nearshore outsourcing : is when a business signs a contract with an outsourcing unit introduced by “neighboring” businesses.
Which field of activity is BPO suitable for?
Not only do customers wonder what is BPO outsourcing, but they are also interested in what field of activity BPO is suitable for? To answer the two questions above, please continue reading the information mentioned below.
- Finance – Accounting: BPO can help finance and accounting companies reduce costs and increase efficiency in financial management, payment processing, debt collection and financial reporting.
- Information technology: BPO provides IT infrastructure management, software development and system maintenance services to IT companies.
- Human Resource Management: BPO provides services related to human resource management such as recruitment, training, insurance and salary, helping to reduce costs and increase efficiency in human resource management.
In addition, BPO can also be suitable for other areas such as supply chain management, marketing, sales, operations and customer service.
Which field of activity is BPO suitable for?
>>> See more: Choose a reputable IT Outsourcing service
What are the benefits of the BPO form?
When using BPO services, businesses will receive the following benefits:
When cooperating with outsourced companies, enterprises will save maximum production costs. BPO companies can meet the needs of customers with low cost but still ensure good service quality. In addition, the enterprise also does not have to pay training fees and pay salaries for highly specialized staff, but still has a professional team to support and solve difficult problems of the company.
Flexibility in project implementation
Outsourcing companies update the economic situation very quickly, so they can help businesses navigate their strategies to match the changing economy. Avoid falling into the passive position when becoming a business behind the times.
Better quality and efficiency
Outsourced companies have the function of supporting businesses to complete the shortcomings that businesses cannot afford. From there, these companies will have enough time and human resources to focus on core areas from which to develop the company better and better.
Increase competitive advantage
The human resources of BPO companies are extremely rich and highly specialized. As a result, it is possible to receive and listen to customer feedback as quickly as possible. Then change the product so that it increasingly matches the requirements of the customer. At this time, your business will increase its competitive advantage over competitors in the same industry many times.
What are the benefits of BPO services?
Expand the scope of business
Partnering with outsourced companies will help businesses access a lot of useful information and use high-quality resources. Besides, outsourcing will help to develop the shortcomings of the business to help you focus on the strengths. Since then, the company will continuously develop sustainably and increase the opportunity to expand the business scope.
Some points to note about the form of BPO
In addition to understanding what BPO is as well as the benefits that this model brings, businesses need to pay attention to the following factors:
Security and regulations
When businesses choose to cooperate with outsourcers, it means accepting that the confidentiality and security of the company is compromised. So, to effectively outsource, businesses need support from trusted IT executives who help ensure transactions are carried out safely and efficiently. Furthermore, executives should also participate in the periodic review of the outsourced function, to consider whether to continue outsourcing or change other regulatory arrangements.
Scope of work
Enterprises need to clearly define the scope of work, then switch from internal employees to outsourced partners when cooperating with BPO service providers. In addition, it is necessary to evaluate the 3rd party workflow to see if it affects the company’s goals and operational strategy.
Before that, the two sides need to discuss in detail about the strategic goals as well as the criteria to be achieved for the cooperation to become smooth and with the best quality.
Choose BPO outsourcing service at any reputable unit?
MP Telecom is proud to be the pioneer flag in the field Contact Center in Vietnam. With more than 21 years of experience in the industry and providing more than hundreds of millions of Business Process Outsourcing (BPO) solutions for domestic and foreign businesses. MP Telecom always affirms its brand by the quality of service it brings to customers.
Currently, MP Telecom is providing the following services to customers:
- Outsource customer care.
- Telephone sales support.
- Outsource personnel and train soft skills.
- Technical support services, management and operation of information systems.
- Outsource data entry.
- Promote brand recognition through Voice and SMS.
- Mobilesip and Simbox services.
When you need to outsource to solve backlog problems or shortcomings of your business model, please contact us immediately by hotline: 1900 585853. Besides, you can visit the website MP Telecom for the fastest and most detailed response.
>>> See more: BPO service – Outsourcing business process of MP Telecom
The above article has just answered questions about what is a BPO outsourcing service as well as useful information surrounding this field. Specifically BPO is a field that is growing strongly around the world. Using BPO services helps organizations focus their people and resources on strategic activities, thereby increasing productivity, efficiency and reducing operational costs. Moreover, the use of BPO services also helps businesses to take advantage of advanced and quickly updated technologies to meet their business needs.
However, the application of BPO services also has risks, especially in terms of information security. The transfer of important data and information to a third party can increase the risk of information theft or disclosure of important information by the organization. Hopefully the information about what BPO service is will be useful and can help you make the right choice for the upcoming business direction.